Soaring German IT market lacks 38,000 IT experts
IT companies in Germany employed almost 700,000 highly qualified employees in 2013 according to a recent survey conducted by the high-tech association BITKOM for the information and communications technology (ICT). Software, Hardware and IT-Services companies are expected to have hired another 19,000 employees in 2013.
In addition, there are more than 200,000 jobs in the telecommunication and the consumer electronics sectors in Germany, making ITC a substantial and growing part of Germanys strong economy.
However, the shortage of qualified personnel is still a big issue. A recent study on the labor market for IT professionals by the high-tech association BITKOM shows that overall, the German IT market is lacking an additional 39,000 IT professionals, including 16,000 in the ICT sector itself and 23,000 in companies of all other industries.
Almost 60% of IT companies have declared that the shortage of skilled workers is the biggest challenge for the third year in a row. "The shortage of skilled labor is one of the most pressing problems, especially for smaller businesses. A lack of IT specialists also hinders the creation and growth of start-ups," said BITKOM vice president Ulrich Dietz in a recent press release.
“This additional demand is a huge opportunity for foreign IT service companies looking to enter the German IT market," says Bernd Hoeck, managing partner and go-to-market expert for Germany at bloodsugarmagic. “Foreign IT service companies need to provide innovative engagement models to enter the market. It is not just simple ideas of offshore development and out-tasking. It also includes joint ventures and other forms of cooperation. Having a local German partner or installing your own team in Germany is a must.”
"However, with Germany's economy continuing to be the European powerhouse, it is now a good time for a market entry in Germany," Hoeck continues. "When we take foreign IT software and service companies to Germany, we see a lot of interest by local players for cooperation."